Merle Is a Student Who Believes That Since Share Ownership

question 55

Multiple Choice

Merle is a student who believes that since share ownership of corporations is so dispersed, actual control has passed into the hands of managers who run firms on a day-to-day basis. Merle's ideas echo those of:

• A) Adam Smith in The Wealth of Nations.
• B) Karl Marx in The Communist Manifesto.
• C) Adolf Berle and Gardiner Means in The Modern Corporation and Private Property.
• D) Wright Mills in The Power Elite.

---

Definitions:

Maturity Date

The specified date when the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Allowance Method

An accounting technique that estimates and accounts for bad debts expense, reducing accounts receivable by a predicted amount of uncollectible accounts.

Outstanding Receivables

Amounts due to a company for goods or services that have been delivered or sold but not yet paid by customers.

Allowance for Doubtful Accounts

A contra asset account that reflects the estimated amount of accounts receivable that may not be collectible.